How exactly can the board become engaged in corporate strategy, and what is the role of management and board committees?
The Report of the Blue Ribbon Commission on the Role of the Board in Corporate Strategy has recommended that boards be constructively engaged with management to ensure the appropriate development, execution, and modification of the company’s strategy. The nature and extent of the board’s involvement in strategy will depend on the particular circumstances of the company and the industry in which it is operating. While the board can—and in some cases should— use a committee of the board or an advisory board to analyze specific aspects of a proposed strategy, the full board should be engaged in the evolution of the strategy. The Report of the Blue Ribbon Commission on the Role of the Board in Corporate Strategy made the following recommendations: • Re. Strategy Development • Management and the board should jointly establish the process the company will use to develop its strategy, including an understanding of the respective roles of management and the board. • Management and the board sh
